Property & Companies

JJH1969 Registered Posts: 110 💫 🐯 💫
Does anyone know what the advantages are of setting up a limited company for your property business and/or what are the disadvantages of transferring the property to a company at a later date if indeed this is possible?


  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 🎆 🐘 🎆
    Stamp Duty is the first thing that springs to mind: payable on transfers between company and individual.

    Company will have to prepare full statutory accounts and CT return; individual just has to complete land and property pages on tax return.

    Individual has CGT allowances on sale of property, company doesn't. But company may pay a lower rate of tax if the individual is a higher rate taxpayer.
  • JJH1969
    JJH1969 Registered Posts: 110 💫 🐯 💫
    Thanks for this - how much would you charge for setting up a company?
  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    Loans and mortgages are more difficult for a limited company.
  • JJH1969
    JJH1969 Registered Posts: 110 💫 🐯 💫
    In what way?
  • Gem7321
    Gem7321 MAAT, AAT Licensed Accountant Posts: 1,438
    Companies often don't have an established credit rating and if it's an owner-managed company it's likely there is only a small reserve as the reserves have been taken out in dividends which in my experience banks don't like very much.
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